Financial
Accounting
(FA/FFA)
Syllabus and study guide
September 2019 to August 2020
© ACCA 2019-2020 All rights reserved.
1
SUMMARY OF CONTENT
INTRODUCTION
1. Intellectual levels
2. Learning hours and educational recognition
3. Guide to ACCA examination structure
4. Guide to ACCA examination assessment
FINANCIAL ACCOUNTING SYLLABUS
5. Qualification Structure
6. Relational diagram linking Financial
Accounting with other exams
7. Overall aim of the syllabus
8. Rationale
9. Main capabilities
10. Approach to examining the syllabus
11. The syllabus
FINANCIAL ACCOUNTING STUDY GUIDE
12. Detailed study guide
13. Summary of changes to Financial
Accounting
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© ACCA 2019-2020 All rights reserved.
1. INTELLECTUAL LEVELS
ACCA qualifications are designed to progressively
broaden and deepen the knowledge and skills
demonstrated by the student at a range of levels
through each qualification.
Throughout, the study guides assess both
knowledge and skills. Therefore a clear distinction is
drawn, within each subject area, between assessing
knowledge and skills and in assessing their
application within an accounting or business
context. The assessment of knowledge is denoted by
a superscriptK and the assessment of skills is
denoted by the superscriptS.
2. LEARNING HOURS AND EDUCATIONAL
RECOGNITION
As a member of the International Federation of
Accountants, ACCA seeks to enhance the education
recognition of its qualification on both national and
international education frameworks, and with
educational authorities and partners globally. In
doing so, ACCA aims to ensure that its qualifications
are recognized and valued by governments,
regulatory authorities and employers across all
sectors. To this end, ACCA qualifications are
currently recognized on the education frameworks in
several countries. Please refer to your national
education framework regulator for further
information about recognition.
ACCA will publish examinable documents once a
year to indicate exactly what regulations and
legislation could potentially be assessed within
identified examination sessions.
For this examination regulation issued or legislation
passed on or before 31st August annually, will be
assessed from September 1st of the following year to
August 31st of the year after. Please refer to the
examinable documents for the exam (where
relevant) for further information.
Regulation issued or legislation passed in
accordance with the above dates may be
examinable even if the effective date is in the future.
The term issued or passed relates to when
regulation or legislation has been formally approved.
The term effective relates to when regulation or
legislation must be applied to entity transactions
and business practices.
The study guide offers more detailed guidance on
the depth and level at which the examinable
documents will be examined. The study guide
should therefore be read in conjunction with the
examinable documents list.
3. GUIDE TO ACCA EXAMINATION
STRUCTURE AND DELIVERY MODE
The structure of examinations varies.
The Foundations examinations contain 100%
compulsory questions to encourage candidates to
study across the breadth of each syllabus.
All Foundations examinations are assessed by twohour computer based examinations.
The pass mark for all FIA examinations is 50%.
4. GUIDE TO ACCA EXAMINATION
ASSESSMENT
ACCA reserves the right to examine anything
contained within any study guide within any
examination session. This includes knowledge,
techniques, principles, theories, and concepts as
specified.
For specified financial accounting, audit and tax
examinations, except where indicated otherwise,
© ACCA 2019-2020 All rights reserved.
3
5. QUALIFICATION STRUCTURE
The qualification structure requires candidates who wish to be awarded the ACCA Diploma in Accounting and
Business (RQF Level 4) to pass the Accountant in Business (AB)/(FAB), Management Accounting (MA)/ (FMA)
and the Financial Accounting (FA)/(FFA) examinations and successfully complete the Foundations in
Professionalism (FiP) module.
6. RELATIONAL DIAGRAM LINKING FINANCIAL ACCOUNTING WITH OTHER EXAMS
The Foundations in Accountancy suite of qualifications is designed so that a student can progress through three
discrete levels; RQF Level 2, 3, and 4. Students are recommended to enter Foundations in Accountancy at the
level which is most appropriate to their needs and to take examinations in order, but this is not a mandatory
requirement.
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© ACCA 2019-2020 All rights reserved.
7. OVERALL AIM OF THE SYLLABUS
To develop knowledge and understanding of the
underlying principles and concepts relating to
financial accounting and technical proficiency in the
use of double-entry accounting techniques including
the preparation of basic financial statements.
8. RATIONALE
The syllabus for Financial Accounting (FA)/FFA
introduces the candidate to the fundamentals of the
regulatory framework relating to accounts
preparation and to the qualitative characteristics of
useful information. The syllabus then covers drafting
financial statements and the principles of accounts
preparation. The syllabus then concentrates in
depth on recording, processing, and reporting
business transactions and events. The syllabus then
covers the use of the trial balance and how to
identify and correct errors, and then the preparation
of financial statements for incorporated and
unincorporated entities. The syllabus then moves in
two directions, firstly requiring candidates to be able
to conduct a basic interpretation of financial
statements; and secondly requiring the preparation
of simple consolidated financial statements from the
individual financial statements of group incorporated
entities.
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9. MAIN CAPABILITIES
On successful completion of this exam, candidates should be able to:
6
A
Explain the context and purpose of financial reporting
B
Define the qualitative characteristics of financial information
C
Demonstrate the use of double-entry and accounting systems
D
Record transactions and events
E
Prepare a trial balance (including identifying and correcting errors)
F
Prepare basic financial statements for incorporated and unincorporated entities.
G
Prepare simple consolidated financial statements
H
Interpretation of financial statements
© ACCA 2019–2020 All rights reserved.
10. APPROACH TO EXAMINING THE
SYLLABUS
The syllabus is assessed by a two hour computerbased examination. Questions will assess all parts of
the syllabus and will test knowledge and some
comprehension or application of this knowledge.
The examination will consist of two sections.
Section A will contain 35 two mark objective test
questions. Section B will contain 2 fifteen mark
multi-task questions. These will test consolidations
and accounts preparation. The consolidation
question could include a small amount of
interpretation and the accounts preparation question
could be set in the context of a sole trader or a
limited company
11. THE SYLLABUS
A
The context and purpose of financial reporting
1.
The scope and purpose of financial statements
for external reporting
2.
Cash
3.
Inventory
4.
Tangible non-current assets
5.
Depreciation
6.
Intangible non-current assets and amortisation
7.
Accruals and prepayments
8.
Receivables and payables
9.
Provisions and contingencies
10. Capital structure and finance costs
E
Preparing a trial balance
1.
Trial balance
2.
Correction of errors
2.
Users’ and stakeholders’ needs
3.
Control accounts and reconciliations
3.
The main elements of financial reports
4.
Bank reconciliations
4.
The regulatory framework (legislation and
regulation, reasons and limitations, relevance
of accounting standards)
5.
Suspense accounts
F
Preparing basic financial statements
5.
Duties and responsibilities of those charged
with governance.
1.
Statements of financial position
2.
B
The qualitative characteristics of financial
information
Statements of profit or loss and other
comprehensive income
1.
The qualitative characteristics of financial
information
3.
Disclosure notes
4
Events after the reporting period
5.
Statements of cash flows
6.
Incomplete records
G
Preparing simple consolidated financial
statements
1.
Subsidiaries
2.
Associates
H
Interpretation of financial statements
C
The use of double-entry and accounting
systems
1.
Double-entry book-keeping principles including
the maintenance of accounting records and
sources of accounting information
2.
Ledger accounts, books of prime entry, and
journals
D
Recording transactions and events
1.
Sales and purchases
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7
8
1.
Importance and purpose of analysis of financial
statements
2.
Ratios
3.
Analysis of financial statements
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12. DETAILED STUDY GUIDE
A
THE CONTEXT AND PURPOSE OF FINANCIAL
REPORTING
1.
The scope and purpose of, financial statements
for external reporting
a)
Define financial reporting – recording,
analysing and summarising financial data.[K]
b)
Identify and define types of business entity –
sole trader, partnership, limited liability
company.[K]
c)
Recognise the legal differences between a sole
trader, partnership and a limited liability
company.[K]
d)
Identify the advantages and disadvantages of
operating as a limited liability company, sole
trader or partnership.[K]
e)
Understand the nature, principles and scope of
financial reporting.[K]
2.
Users’ and stakeholders’ needs
a)
Identify the users of financial statements and
state and differentiate between their
information needs.[K]
3.
The main elements of financial reports
a)
Understand and identify the purpose of each of
the main financial statements.[K]
b)
Define and identify assets, liabilities, equity,
revenue and expenses.[K]
4.
The regulatory framework
a)
Understand the role of the regulatory system
including the roles of the IFRS Foundation
(IFRSF), the International Accounting
Standards Board (IASB®), the IFRS Advisory
Council (IFRS AC) and the IFRS Interpretations
Committee (IFRIC®).[K]
b)
Understand the role of International Financial
Reporting Standards.[K]
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5. Duties and responsibilities of those
with governance
charged
a)
Explain what is meant by governance
specifically in the context of the preparation of
financial statements.[K]
b)
Describe the duties and responsibilities of
directors and other parties covering the
preparation of the financial statements. [K]
B
THE QUALITATIVE CHARACTERISTICS
OF FINANCIAL INFORMATION
1.
The qualitative characteristics of financial
information
a)
Define, understand and apply qualitative
characteristics:[K]
i) Relevance
ii) Faithful representation
iii) Comparability
iv) Verifiability
v) Timeliness
vi) Understandability
b)
Define, understand and apply accounting
concepts:[K]
i) Materiality
ii) Substance over form
iii) Going concern
iv) Business entity concept
v) Accruals
vi) Prudence
vii) Consistency
C
THE USE OF DOUBLE-ENTRY AND
ACCOUNTING SYSTEMS
1.
Double-entry book-keeping principles including
the maintenance of accounting records
a)
Identify and explain the function of the main
data sources in an accounting system.[K]
b)
Outline the contents and purpose of different
types of business documentation, including:
quotation, sales order, purchase order, goods
received note, goods despatched note, invoice,
statement, credit note, debit note, remittance
advice, receipt.[K]
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c)
Understand and apply the concept of doubleentry accounting and the duality concept.[K]
b)
Understand the need for a record of petty cash
transactions.[K]
d)
Understand and apply the accounting
equation.[S]
3.
Inventory
a)
e)
Understand how the accounting system
contributes to providing useful accounting
information and complies with organisational
policies and deadlines.[K]
Recognise the need for adjustments for
inventory in preparing financial statements.[K]
b)
Record opening and closing inventory.[S]
c)
Identify the alternative methods of valuing
inventory.[K]
d)
Understand and apply the IASB requirements
for valuing inventories.[S]
e)
Recognise which costs should be included in
valuing inventories.[S]
f)
Understand the use of continuous and period
end inventory records.[K]
g)
Calculate the value of closing inventory using
FIFO (first in, first out) and AVCO (average
cost) – both periodic weighted average and
continuous weighted average.[S]
f)
Identify the main types of business transactions
e.g. sales, purchases, payments, receipts.[K]
2.
Ledger accounts, books of prime entry and
journals
a)
Identify the main types of ledger accounts and
books of prime entry, and understand their
nature and function.[K]
b)
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Understand and illustrate the uses of journals
and the posting of journal entries into ledger
accounts.[S]
c)
Identify correct journals from given narrative.[S]
d)
Illustrate how to balance and close a ledger
account.[S]
h)
Understand the impact of accounting concepts
on the valuation of inventory.[K]
D
RECORDING TRANSACTIONS AND EVENTS
i)
Identify the impact of inventory valuation
methods on profit and on assets.[S]
1.
Sales and purchases
4.
Tangible non-current assets
a)
Record sale and purchase transactions in
ledger accounts.[S]
a)
Define non-current assets.[K]
b)
Understand and record sales and purchase
returns.[S]
b)
Recognise the difference between current and
non-current assets.[K]
c)
Understand the general principles of the
operation of a sales tax.[K]
c)
Explain the difference between capital and
revenue items. [K]
d)
Calculate sales tax on transactions and record
the consequent accounting entries.[S]
d)
Classify expenditure as capital or revenue
expenditure.[S]
e)
Account for discounts allowed
e)
Prepare ledger entries to record the acquisition
and disposal of non-current assets.[S]
(f)
Account for discounts received.[S]
f)
2.
Cash
a)
Record cash transactions in ledger accounts.[S]
Calculate and record profits or losses on
disposal of non-current assets in the statement
of profit or loss including part exchange
transactions.[S]
[S]
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g)
Record the revaluation of a non-current asset in
ledger accounts, the statement of profit or loss
and other comprehensive income and in the
statement of financial position.[S]
c)
Identify the definition and treatment of
“research costs” and “development costs” in
accordance with IFRS® Standards.[K]
h)
Calculate the profit or loss on disposal of a
revalued asset.[S]
d)
Calculate amounts to be capitalised as
development expenditure or to be expensed
from given information.[S]
i)
Illustrate how non-current asset balances and
movements are disclosed in financial
statements.[S]
e)
Explain the purpose of amortisation.[K]
f)
Calculate and account for the charge for
amortisation.[S]
Explain the purpose and function of an asset
register.[K]
7.
Accruals and prepayments
5.
Depreciation
a)
Understand how the matching concept applies
to accruals and prepayments.[K]
a)
Understand and explain the purpose of
depreciation.[K]
b)
Identify and calculate the adjustments needed
for accruals and prepayments in preparing
financial statements.[S]
c)
Illustrate the process of adjusting for accruals
and prepayments in preparing financial
statements.[S]
d)
Prepare the journal entries and ledger entries
for the creation of an accrual or prepayment.[S]
e)
Understand and identify the impact on profit
and net assets of accruals and prepayments.[S]
8.
Receivables and payables
a)
Explain and identify examples of receivables
and payables.[K]
b)
Identify the benefits and costs of offering credit
facilities to customers.[K]
c)
Understand the purpose of an aged receivables
analysis.[K]
d)
Understand the purpose of credit limits.[K]
e)
Prepare the bookkeeping entries to write off an
irrecoverable debt.[S]
f)
Record an irrecoverable debt recovered.[S]
g)
Identify the impact of irrecoverable debts on
the statement of profit or loss and on the
statement of financial position.[S]
j)
b)
c)
d)
e)
f)
g)
Calculate the charge for depreciation using
straight line and reducing balance methods.[S]
Identify the circumstances where different
methods of depreciation would be
appropriate.[K]
Illustrate how depreciation expense and
accumulated depreciation are recorded in
ledger accounts.[S]
Calculate depreciation on a revalued noncurrent asset including the transfer of excess
depreciation between the revaluation surplus
and retained earnings.[S]
Calculate the adjustments to depreciation
necessary if changes are made in the estimated
useful life and/or residual value of a noncurrent asset.[S]
Record depreciation in the statement of profit
or loss and statement of financial position.[S]
6.
Intangible non-current assets and amortisation
a)
Recognise the difference between tangible and
intangible non-current assets.[K]
b)
Identify types of intangible assets.
[K]
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11
h)
Prepare the bookkeeping entries to create and
adjust an allowance for receivables.[S]
c)
Identify and record the other reserves which
may appear in the company statement of
financial position.[S]
i)
Illustrate how to include movements in the
allowance for receivables in the statement of
profit or loss and how the closing balance of
the allowance should appear in the statement
of financial position.[S]
d)
Define a bonus (capitalisation) issue and its
advantages and disadvantages.[K]
e)
Define a rights issue and its advantages and
disadvantages.[K]
f)
Record and show the effects of a bonus
(capitalisation) issue in the statement of
financial position.[S]
g)
Record and show the effects of a rights issue in
the statement of financial position.[S]
h)
Record dividends in ledger accounts and the
financial statements.[S]
i)
Calculate and record finance costs in ledger
accounts and the financial statements.[S]
j)
Identify the components of the statement of
changes in equity.[K]
E
PREPARING A TRIAL BALANCE
Identify and illustrate the different methods of
accounting for provisions, contingent liabilities
and contingent assets.[K]
1.
Trial balance
a)
Identify the purpose of a trial balance.[K]
d)
Calculate provisions and changes in
provisions.[S]
b)
Extract ledger balances into a trial
balance.[S]
e)
Account for the movement in provisions.[S]
c)
Prepare extracts of an opening trial
balance.[S]
f)
Report provisions in the final accounts.[S]
d)
Identify and understand the limitations of a
trial balance.[K]
2.
Correction of errors
a)
Identify the types of error which may occur in
bookkeeping systems.[K]
b)
Identify errors which would be highlighted by
the extraction of a trial balance.[K]
c)
Prepare journal entries to correct errors.[S]
j)
k)
l)
Account for contras between trade receivables
and payables.[S]
Prepare, reconcile and understand the
purpose of supplier statements.[S]
Classify items as current or non-current
liabilities in the statement of financial
position.[S]
9.
Provisions and contingencies
a)
Understand the definition of “provision”,
“contingent liability” and “contingent asset”.[K]
b)
Distinguish between and classify items as
provisions, contingent liabilities or contingent
assets.[K]
c)
10. Capital structure and finance costs
a)
b)
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Understand the capital structure of a limited
liability company including: [K]
i) Ordinary shares
ii) Preference shares (redeemable and
irredeemable)
iii) Loan notes.
Record movements in the share capital and
share premium accounts.[S]
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d)
Calculate and understand the impact of errors
on the statement of profit or loss and other
comprehensive income and statement of
financial position.[S]
d)
Make journal entries to clear a suspense
account.[S]
F
PREPARING BASIC FINANCIAL STATEMENTS
3.
Control accounts and reconciliations
1.
Statements of financial position
a)
Understand the purpose of control accounts for
accounts receivable and accounts payable.[K]
a)
b)
Understand how control accounts relate to the
double-entry system.[K]
Recognise how the accounting equation,
accounting treatments (as stipulated within
sections D, E and examinable documents) and
business entity concept underlie the statement
of financial position.[K]
c)
Prepare ledger control accounts from given
information.[S]
b)
Understand the nature of reserves.[K]
c)
d)
Perform control account reconciliations for
accounts receivable and accounts payable.[S]
Identify and report reserves in a company
statement of financial position.[S]
d)
Prepare a statement of financial position or
extracts as applicable from given information
using accounting treatments as stipulated
within sections D, E and examinable
documents.[S]
e)
Understand why the heading retained earnings
appears in a company statement of financial
position.[K]
2.
Statements of profit or loss and other
comprehensive income
a)
Prepare a statement of profit or loss and other
comprehensive income or extracts as
applicable from given information using
accounting treatments as stipulated within
section D, E and examinable documents.[S]
b)
Understand how accounting concepts apply to
revenue and expenses.[K]
c)
Calculate revenue, cost of sales, gross profit,
profit for the year, and total comprehensive
income from given information.[S]
e)
Identify errors which would be highlighted by
performing a control account reconciliation.[K]
f)
Identify and correct errors in control accounts
and ledger accounts.[S]
4.
Bank reconciliations
a)
Understand the purpose of bank
reconciliations.[K]
b)
Identify the main reasons for differences
between the cash book and the bank
statement.[K]
c)
Correct cash book errors and/or omissions.[S]
d)
Prepare bank reconciliation statements.[S]
e)
Derive bank statement and cash book balances
from given information.[S]
f)
Identify the bank balance to be reported in the
final accounts.[S]
5.
Suspense accounts
d)
Disclose items of income and expenditure in
the statement of profit or loss. [S]
a)
Understand the purpose of a suspense
account.[K]
e)
Record income tax in the statement of profit or
loss of a company including the under and
overprovision of tax in the prior year.[S]
b)
Identify errors leading to the creation of a
suspense account.[K]
c)
Record entries in a suspense account.[S]
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13
f)
Understand the interrelationship between the
statement of financial position and the
statement of profit or loss and other
comprehensive income. [K]
g)
Identify items requiring separate disclosure on
the face of the statement of profit or loss.[K]
3.
Disclosure notes
a)
Explain the purpose of disclosure notes[K]
b)
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Draft the following disclosure notes[S]
i) Non current assets including tangible and
intangible assets
ii) Provisions
iii) Events after the reporting period
iv) Inventory
4.
Events after the reporting period
a)
Define an event after the reporting period in
accordance with IFRS Standards.[K]
b)
Classify events as adjusting or non-adjusting.[S]
c)
Distinguish between how adjusting and nonadjusting events are reported in the financial
statements.[K]
5
Statements of cash flows (excluding
partnerships)
a)
Differentiate between profit and cash flow.[K]
b)
Understand the need for management to
control cash flow.[K]
c)
Recognise the benefits and drawbacks to users
of the financial statements of a statement of
cash flows. [K]
d)
Classify the effect of transactions on cash
flows.[S]
e)
Calculate the figures needed for the statement
of cash flows including:[S]
i) Cash flows from operating activities
ii) Cash flows from investing activities
iii) Cash flows from financing activities
© ACCA 2019–2020 All rights reserved.
f)
Calculate the cash flow from operating
activities using the indirect and direct
method.[S]
g)
Prepare statements of cash flows and extracts
from statements of cash flows from given
information.[S]
h)
Identify the treatment of given transactions in a
company’s statement of cash flows.[K]
6.
Incomplete records
a)
Understand and apply techniques used in
incomplete record situations: [S]
i) Use of accounting equation
ii) Use of ledger accounts to calculate missing
figures
iii) Use of cash and/or bank summaries
iv) Use of profit percentages to calculate
missing figures.
G
PREPARING SIMPLE CONSOLIDATED
FINANCIAL STATEMENTS
1.
Subsidiaries
a)
Define and describe the following terms in the
context of group accounting: [K]
i) Parent
ii) Subsidiary
iii) Control
iv) Consolidated or group financial statements
v) Non-controlling interest
vi) Trade / simple investment
b)
Identify subsidiaries within a group structure. [K]
c)
Describe the components of and prepare a
consolidated statement of financial position or
extracts thereof including: [S]
i) Fair value adjustments at acquisition on
land and buildings (excluding depreciation
adjustments)
ii) Fair value of consideration transferred from
cash and shares (excluding deferred and
contingent consideration)
iii) Elimination of intra-group trading balances
(excluding cash and goods in transit)
iv) Removal of unrealised profit arising on
intra-group trading
v) Acquisition of subsidiaries part way through
the financial year
d)
Calculate goodwill (excluding impairment of
goodwill) using the full goodwill method only
as follows: [S]
3.
Analysis of financial statements
a)
Calculate and interpret the relationship
between the elements of the financial
statements with regard to profitability, liquidity,
efficient use of resources and financial
position[S].
b)
Draw valid conclusions from the information
contained within the financial statements and
present these to the appropriate user of the
financial statements. [S]
Fair value of consideration
X
Fair value of non-controlling interest
X
Less fair value of net assets at acquisition (X)
Goodwill at acquisition
X
e)
Describe the components of and prepare a
consolidated statement of profit or loss or
extracts thereof including: [S]
i) Elimination of intra-group trading balances
(excluding cash and goods in transit)
ii) Removal of unrealised profit arising on
intra-group trading
iii) Acquisition of subsidiaries part way through
the financial year
2.
Associates
a)
Define and identify an associate and significant
influence and identify the situations where
significant influence exists. [K]
b)
Describe the key features of a parent-associate
relationship and be able to identify an
associate within a group structure. [K]
c)
Describe the principle of the equity method of
accounting for Associate entities [K]
H
INTERPRETATION OF FINANCIAL
STATEMENTS
1.
Importance and purpose of analysis of financial
statements
a)
Describe how the interpretation and analysis of
financial statements is used in a business
environment. [K]
b)
Explain the purpose of interpretation of ratios[K].
2.
Ratios
a)
Calculate key accounting ratios
i) Profitability
ii) Liquidity
iii) Efficiency
iv) Position
b)
Explain the interrelationships between ratios
[S]
[K]
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15
13. SUMMARY OF CHANGES TO FINANCIAL ACCOUNTING (FA)/(FFA)
ACCA periodically reviews its qualification syllabuses so that they fully meet the needs of stakeholders including
employers, students, regulatory and advisory bodies and learning providers. These syllabus changes are effective
from September 2019 and the next update will be September 2020
There are no significant changes to the syllabus however minor changes are identified in table 1.
Table 1 – changes to FFA/FA
Section
and
subject
area
B1 (b)
D1 (e)




G2 (a)
G2 (c )



16
Syllabus content
Rationale
Removed (vi) fair presentation
Added (vi) prudence
We have removed fair presentation as
the concept is covered by ‘faithful
representation’ at B1 (a) (ii).
(e) Account for discounts allowed [S]
(f) Account for discounts received.[S]
Removed ‘participating interest’
Describe the principle of the equity
method of accounting for Associate
entities[K]
In the current update to the FFA/FA
FA1 and FA2 exams, please note that
the amended Conceptual Framework
for Financial Reporting issued by the
IASB March 2018 will apply
© ACCA 2019–2020 All rights reserved.
Prudence is added to reflect the
emphasis given to the concept in the
amended Conceptual Framework for
Financial Reporting
Split the accounting for discounts
allowed and discounts received into two
syllabus outcomes to better reflect the
different accounting treatment required
for discounts allowed under IFRS 15
Revenue from Contracts with Customers
For clarification
For clarification that only Associate
entities are examinable and not Joint
Arrangements
For clarification